tv Senate 2018 Federal Budget - Part 1 CSPAN October 4, 2017 10:43pm-12:11am EDT
q&a. >> c-span was created as a public service for television companies and is brought to you by your cable and satellite providers. >> the senate budget committee has begun work on the federal budget resolution in this lays the groundwork for the tax roof reformckage -- tax package. chairs the committee.
that put more money in the hands of hard-working americans. i would like to remember a formercolleague and a chairman of the committee who recently passed away, the new mexico senator that was a true ledcal conservative and pul members of both parties together. i know that we all appreciate his service and sacrifice as a member of this great committee. this budget resolution begins the process of pursuing the overdue tax reform that will jumpstart economic growth and it starts with creating the fiscal framework and holding back
investment and american productivity. there has been positive the tax reform legislation will move through the committee process and this will provide members of the committee the opportunity to offer amendments before the full senate and, when the bill moves to the floor of the senate, everybody will be able to contribute before adding amendments to the measure. i am proud that the congress and the president are tackling this issue. our nation needs a more transparent tax system that will leave more dollars in the pockets of working families. the last time they were able to accomplish tax reform was in 1986. in 1986 haveed become steadily and ridiculously
llyplicated, woefu distressing and there have an foreign-based companies while harming u.s. companies and employers and we ask why jobs are leaving the country and the figures in is the hostile tax landscape. aims to reverse that trend and put in motion a process for progrowth reform that will cut taxes on american $10lies and job creators by trillion over 10 years. such reform, done right, will spur investment and reinvigorate productivity at home. this should reward hard work, saving, and investment. should limiting government distortions of market-based decisions.
it provides for an international tax system that does not penaliz companies. this influences every day dollar and cents decisions and helps drive decisions like whether to ank in additional -- additional hour. this indirectly and. leffler -- this can indirectly and thee the level after-tax returns, while changing the cost. the joint committee has consistently shown potential economic growth in scoring past tax measures. movesrogrowth reform that beld allow resources to reallocated, and of the use that
produces the best tax outcome and this would lead to the growth of businesses and high economic output. this furnishes additional dollars to the treasury and will boost the value of everything we produce and that means more money for the government. an increase could reduce the deficit over 10 years. oric growthto hist would reduce deficits and be more than sufficient to decrease the revenue. the 20 18th senate budget is, first and foremost, about reforming the tax code and it is
a serious fiscal plan. if congress and the administration credit here to this, we would be on a better track with reduced tax burdens and a growing economy. the senate is presenting a way forward with a goal of creating a more efficient government. a reductionroposes in spending while investing in a strong national defense come andtrong national defense taking care of those who are the weakest in our society. we are focused on achieving the balanced watch it at the end of the window. reform, growth and tax reduced spending, and the improved regulatory landscape,
it would generate a surplus that would grow by 2027. in addition to the fiscal reforms, there are bipartisan efforts to respond to concerns about the budget process and this takes important steps to increase honesty and accuracy by government scorekeepers. this budget serves as a framework to expand economic opportunity and it reflects our beliefs and the american entrepreneurial spirit and they will innovate and invest that money in ways they grow the economy. we believe the best days of the nation are ahead. the time to act is now. our nation will continue to experience the sluggishness of
economic growth. on notour colleagues just another course, but a better course. this just just that. i will turn this over to senator sanders. sanders: let me echo the senator d -- the senator. he was a remarkable center. with thisen five days markup and it is an all-time world record. i appreciate that very much. the american people are dealing with the murder in las vegas and we are dealing with the incredible destruction that has taken place in texas, florida,
puerto rico, the virgin islands. people are asking themselves about what else could go wrong and what else do we have to worry about. i am very sorry to have to inform the american people that they do have something else to worry about. the republican budget that we are dealing with today is, in my view, the most unfair and destructive budget in the modern history of our country. -- and weto be passed will do everything we can to see that it is not -- it would do families.le harm to in almost every instance, this budget ignores the needs of ordinary americans and what the people want and, at the same time, it bends over backwards to protect the interests of the
wealthiest and the most powerful people in the country and the largest campaign contributors. the budget moves our country rapidly into the direction of oligarchy and constitutes nothing less than a massive transfer of wealth from working the sick, the poor, up to the top 1%. it is robin hood in reverse. need andfrom those in those who already live in opulence. americans thought we had ended the republican effort to throw millions off of the health insurance they have when we defeated -- just a week ago -- the last effort to repeal the affordable care act. if you believed that, you are wrong. the republican attacks to destroy health care benefits
continues right in this budget document. this cuts medicaid by $1 trillion over 10 years and throws 15 million americans off of the health insurance they currently have. budget ishis something that republicans have not yet attempted to do, make a $473 billion cut to medicare at a time when so many of our seniors were struggling to keep their head above water economically. some of you may remember that donald trump told the american people that he would not cut social security, medicare, and medicaid. said, every republican wants to do a big number on
social security, medicare, and they want to do it on medicaid. we cannot do that. it is not fair to the people who have been paying in for years. president, tell your republican friends here in this respectt they should your campaign promises that you may to the american people and that health get you elected to be president and tell them that you will veto any legislation that cuts medicare and medicaid and compromises for promises you made to the american people. at a time for massive wealth and inequality, worse than any time since the 1920's, this makes it bad situation worse.
according to the tax policy center, by the end of the decade , 80 percent of the benefits of the republican plan will go to the top 1%, $1.9 trillion in tax rates to the top 1%. top wouldly, the breaks by% of the tax the end of the decade. you look at this and 40% goes to the top 1/10 of 1%. don't from claims to help the middle class, bye-bye repealing the personal exemption and the duction for state and local income taxes, it increases taxes for 30% of middle-class families earning between $50,000 and
$100,000 a year. tax,pealing the estate this would give tax breaks to the very wealthiest in the , and,'s -- in the country by the way, the trump family. in order to pay for the tax breaks, the republican budget makes savage cuts to the programs that means so much to ordinary ends. above and beyond, disastrous cuts to medicare and medicaid. if you are a lower income citizen, you will no longer keep in the winter because of a cut in this budget with the low income home energy assistance program. millions of young people are struggling to figure out how
they can go to college. proposes a $100 billion cut in grants and other student financial assistance programs. at a time we have one of the highest rates of infant mortality in the industrialized world, please understand that the republican budget makes a wic program to over 1.2 million women in america and to their newborn babies. at a time when millions of 50%icans are paying 40% or with affordable housing, this budget proposes cuts to the rental assistance program.
at a time when the cost of childcare is skyrocketing, this 25,000 each throw and every year off of the head start program by cutting it. in total, the republican budget trillion from education, health care, ,ffordable housing, child care and other programs that working people desperately depend on. why are the republicans bringing forth such an absurd budget that is so out of touch with what the american people need and what they want? by huge margins that the american people will do not want to cut medicare or medicaid.
us, after time tells including a recent wall street journal poll. believe the wealthy should be asked to pay more in taxes. why is this budget come forward? who does it represent? thatis an important issue goes beyond the jurisdiction of this committee. it is not with the american people want or need. this is a budget for the billionaire class, the koch brothers, and for those who contribute hundreds of millions of dollars into the republican and democratic party. this budget is not a budget for ordinary. it is the budget for the top 1% and it must be defeated and replaced with a budget that
works for all of us. thank you. i want to go over the process for today and tomorrow. this afternoon is opening statements. tomorrow is debate on amendments. as members are recognized for the opening statements, i request limits to six minutes. members not present at the start of the markup will be recognized in the order at which they arrived. tomorrow, we convene at 11:00 and we will begin with a consideration of amendments. this markup represents the first time the committee has a numeral under the text of the resolution
five days in advance. as a result, the committee requires that timely amendments defiled. this provides a fiscal path. it is not a place to make a decision that are in other committees. as is been a practice of other chairs, all amendments must be fully offset over the total years covered by the budget resolution. and it asian, members must bring copies of their amendments for staff. addition, members must bring copies of their amendments for staff. the amendments offered must damagethat they do not the status of the resolution. amendments outside of the jurisdiction authorize and would
non-germane. as -- parliamentarian has with respect to voting, the committee rules do not allow proxies and members must be present when the votes take place for the vote to be telling. as has been done in prior budget resolutions, i will recognize debate i recognize that. there will be conflict and i will try to find convenient times. thatommittee rules require we have 12 members here to report on the budget resolution conduct committee business. movements toen keep the work going forward and it has worked in the past.
consent of unanimous a quorum requirement being considered for the duration of the markup. before we start the opening statements, we intend to file documents for friday. members could submit additional or minority views. is no later than noon on friday. again, i mentioned that we start at 11:00 tomorrow. now, i recognize senator grassley for six minutes. senator grassley: it will be less than that. i commend you on the difficult task of compiling the budget. you have had to deal with many
competing priorities to prepare the watch it. budget.y -- the obviously, that was not an easy undertaking. if i was closer to you, i would say it was very difficult. you have made difficult choices that will put us on an improved economic path by restraining spending in putting us on a path to balance in this plan provides tools to enact comprehensive tax reform. this is the first step in achieving the important policy comprehensive tax reform to make the country more competitive and grow the economy with working families and, most importantly, the middle class. the finance committee is working code by- fix the tax
prioritizing tax civil vacation. is important for families struggling to make ends meet. employers means that would be able to hire more expand and invest and their operations. it makes it more competitive with foreign countries and the current code penalizes earnings and unlocking those would bring back jobs and corporate profits that are parked overseas. eating tax human breaks would reduce economic distortions. these cause businesses and individuals to spend resources
to reduce the tax burden, rather than putting them to more productive uses and they should leave more money with family breadwinners. income andting earnings and they are in a better position to do that then we are. say igain, i want to enjoy the work to put this together for the resolution. it is job creation and economic growth. of myd back the balance time. >> senator murray. senator murray: this markup highlights how dysfunctional this has become with the republicans in control of
congress. on the calendar, they say the markup of the budget resolution -- i think they know it is a joke. we are marking up a budget months too late and four days into the fiscal year we are supposed to be budgeting for. debatenot here to have a on where we should direct the resources. discuss whatre to we should be investing and we are not here to come around a shared vision for the country. democrats are going to try to have that conversation and we are really here because republican leaders want to start a fast track legislation to jam
legislation through congress to do everything possible to not work with democrats. it gives more tax breaks to the they are circumventing any debate about environmental decisions that would be unwise. and plus a hole in the budget, blows up the dead, and puts social security, medicare, investments in health care, and other priorities, at risk. i find this interesting. republicans spend years pretending to care about the deficit, when it comes to middle-class priorities. when it comes to tax breaks for the rich, that went out the window. that deficitn said concerns are nothing more than a
great talking point then when democrats are in charge. it is all shameful. not just wrong. it isn't going to work. republicans spent months trying to jam trumpetcare through congress. here we are with nothing but failures and democrats and republicans are just finally working together after of delay. i say this to the republican colleagues. partisanship, that is function, the acrimony. let's go to bipartisan legislation. this is what the constituents want and expect. we can get it done. all we are asking is for president trump to keep his promises to keep workers in the middle class and the choice should not be clear -- it should
be clear. should we give president trump's cabinet tax breaks or should we cut taxes for people struggling to go to college. that is the >> of the debate. workerss believe that in the middle class should get tax breaks and everything we see in this budget, the republicans don't agree. i want to move away from the partisan process to do the job we know we need to do. values to a debate about and priorities and we should be hearing this what i'm talking about a path to the bipartisan .udget deal we should be having conversations about ways to strengthen medicare and medicaid and we should be working to provide disaster relief for
families that continue to struggle among the devastation we see in puerto rico and other places. we should be growing the economy hidensuring access to quality child care and reporting our veterans. there is a lot we should be talking about. the conversations we ought to be having in the people we ought to be investing in. we want to keep focus on the with and have a fight we encourage fighting back against republican attempts to jam a partisan tax breaks for using this budget reconciliation procedure. thank you.
withink you for staying the time limit. to join with senator grassley in commending you in putting together a budget that balances and proposes .ppropriate spending restraint progresshe stage for tax reform, something we have badly needed for years. it is described as an effort with children, women, men, young people, old people, every other kind of person. it increases every loophole and
reduces taxes on the wealthy and it has been made in the short part of the markup. >> let's talk about what the budget really does. this gives the ability to years. a balance over 10 there are spending restraints, but you make the assumption that these spending restraints are aimed at hurting a person, as fraud, to finding waste, and abuse. hurting, it is an unfair
characterization. a member of authorizing committees in this congress who have painstakingly undertaken the hard work to find these ways to achieve this goal restraint while the national debt goes ahead. i simply have to say to my colleagues who want to pick up implementway we could this budget and accuse us of wanting to do that -- you are wrong and i wish you would work with us. i know the senator just walk wanted bipartisan conversation and i do.
this moves us into a process by implementsongress what the budget provides. i want to include my remarks about what i considered to be one of the most important parts of the budget. it will set the process underway for progrowth tax reform. our tax code is probably the most unfair, the most complex, the most expensive to comply with, and the most anticompetitive tax code and we need to fix it so that we can grow the economy and the gdp can and jobs andh benefits for the families that need them. this proposal is all about. it has been mercilessly attacked before it has been generated.
let me talk about the framework. proposehad several to how to deal with this tax code and it has been bipartisan in the past. onere has been several, but was bowles-simpson and look at the three ideas that have been around. they have all collapsed the individual rates to three rates. a big six goes to -- by the way, for those using this is a tax cut for the wealthy, the plan we are looking at is a
bottom rate of three points .ower the highest rate is the. it's an plan. bowles-simpson plan. all of these utilize the standard reduction. one of them eliminate the need for why removing the deductions and credits in the code. they all deal with the child tax credit and reduce the corporate tax rate. goes to 20%. and on. goes on the structure we are talking about is a common structure that has been bipartisan in the past and ought to the now and we
should work together to build a strong and powerful reform of our tax code to generate strength and our economy. country. den and is senator wy senator johnson. changingnds like it is into a meeting of the senate finance committee. that will make you feel like a part of a prolonged root canal surgery. let me lay out a couple of points, with regards to taxes. what we are talking about is a trillion dollar elephant in the room. this entire budget is about setting up another crack at partisanation for a
deficit-exploding tax cut. the majority leader has said, crapo's view on how important it is to be , we arean on this intensely committed to a bipartisan approach. the majority leader ruled that out and he said that we are not going to do a bipartisan approach. he said we are going to do a partisan approach and he is said on using reconciliation to jam through a republican plan. and republicans said they are for them, like they are for the middle class. $70,000 -- or
$60,000 or $70,000, you take away the deductions and the family comes out behind. maybe we will see something else, but those of the facts, as of today. one of the things that has occurred to me about the reconciliation process and the next step is, if reconciliation is bad enough, take a look at chairman's1 of the mark. it is required a score occurs of the bill before the vote. you could have no score on the cost of the bill at all. it seems to me, particularly when i listen to my friend, corker, thisr, --
is not a sensible way to proceed. troubling? i think senator crapo was here for this, but i think you look at the math behind what has been advanced today by republicans and there is a magical growth fairy that is being applied. thinkr crapo knows that i that this is a real factor. have mnuchin said we would $12 trillion of growth and we had economist at the senate finance committee saying -- these are republican economists -- the growth doesn't pay for itself and that is why we are concerned. we have seen this movie before,
colleagues. the bush tax cuts were the same thing. growth and what we have is take deficits. ourselves out of this. i can go through this and there thatpass-through provision opens up a loophole to the mega-wealthy that is the size of the grand canyon. to deal of us wants with this. this is the high fliers can figure out a way to take ordinary income and converted into a low rate business income. by the way, they will be causing problems for social security and medicare. they are not paying payroll tax.
that is a valid point that senator sanders pointed out. one veteransr hundreds of billions of dollars from our treasury. .e want to make it clear we have laid out our principles. we should be sensitive to deficits in the focus ought to be on the middle class. theer way, senator crapo, reason we have put hundreds and hundreds of dollars in the pockets of middle-class people ,n this proposal to republicans we tripled the standard deduction and didn't take away the exemptions. a middle-class person really does get hundreds and hundreds of dollars more. would like toy i
conclude this is that i don't think we ought to play russian roulette with the safety of older people who walk on economic tight ropes. that is my background. i had a full head of hair and rugged good looks. we had enormous challenges with health care and challenges. i remember senator corker. he was a sponsor of one of those bills. let's come up with a blueprint that gives all americans the chance to get ahead. proposalcratic tax does that. >> thank you. i want to thank you for your work and your staff. i know it has been difficult dealing with all the moving parts and some of the pay-go issues.
it is something i have difficulty putting much energy into. this is some of the most meaningless work we do here. it has nothing to do with the chairman of the committee. it is a waste of time and it is a nice rhetorical time. in a couple of days, we will be done with this. i have not going to spend a lot of time on the budget. i appreciate some of the pa y-go provisions. again, i know there has been a lot of rhetoric here. i just came packed. there is nothing here that is serious. this is just a move us to tax reconciliation. that is what hundred percent
what this is about. we've talked about bipartisanship for years. es-simpson and tremendous focus on progrowth reform. that was going to be the way we would solve the fiscal issues. i would met, ever since election day, it seems like a light switch has gone off with those issues and it does feel like it that serious and issues in serious discussions about fiscal issues are not going to take place and that is disappointing to me. i did the greatest threat to our nation is our fiscal issues, not north korea, not isis, ourselves and our inability to deal with long-term issues.
republicans and democrats, it has been going on a long time. it has been rare that we have had a president that really cares about this issue. we have had a couple. so, i look at this as an to pro-growthove is t reform. we have issues on the senate floor that the house doesn't have. dhere is the bird rule ans dynamic scoring. i have agreed to accommodate the discussion to give the committees some headroom to begin this discussion. den and others mentioned that, nobody would be more delighted than me that, if we figure out we're going to do this in a bipartisan way.
we will move that to the committee. we understand what is happening. in a few weeks, the committees will begin their work. one of the things that concern me a little bit about what is happening, again, i am for pro-growth tax reform and i think it will help us move away from our deficit problems. that, combined with entitlement reform, which i realize is not going to be discussed for a span of time. very disappointing. is, all that is being talked about is rates. for this to be done, like some earlier, we done have to close loopholes. the only way you can make tax policy permanent is that you --
want to do is something that is permanent. one the things that has not been talked about is, if you are going to do what is laid out, >> you're talking about having to close $4 trillion worth of loopholes. it's been a lot of sugar talked about in the last couple of weeks. one part will be difficult. all of us know what that means. i'm helping move this process along, but believe me: everyone now, mostus --b by people who care about policy understand that i will vote for a tax bill. hope this is bipartisan, and won't just get down to republican votes. i'm voting to move this along.
i'm voting to help us through parliamentary issues on the line with the house. this bill -- unless this bill in its final analysis produces growth, working people have better wages, productivity, that kind of thing -- a it reduces deficits -- let me say that one more time: unless it reduces deficits with reasonable and responsible growth models. unless we can make it permanent, i don't have any interest in it. i'm glad to be here today. i appreciate some of the rhetorical comments that will be made over the next couple hours. will move through -- will move through the amendment -- we'll move through the amendment process. i think the others for their ability to give rhetorical comments. with that, i'll leave. >> thank you.
senator: i you very much, mr. chairman -- thank you very much,. mr. chairman .i want to remember senator domenici. we worked on many things. he was a very dear man who cared about the budget committee and the processes here. i also want to thank my friend for his thoughtfulness and his -- in his comments. mr. chairman, while i disagreed with this budget in some sense, i want to thank you for openness and processes you have put in place that i think were overdue, in terms of making sure we know ahead of time the amendments. importantfor bringing transparency to this process. i really appreciate that. i. at. reform thate tax
will help small businesses, puts money in the pockets of middle-class families in michigan across the country. i couldn't agree more that we need to close some of these loopholes. of the people testifying, both democratic and republican witnesses about that. people agreed that this tax plan thing proposed doesn't do that, any of that. budget need an american that shows what we value as a country. that's what the document is. today, while it's a process we are going through, we don't pay attention in terms of it being binding. this is a reflection of budget are, whatns, who we we value. do we value our children?do we value seniors
? do we value people with disabilities? do we value small business owners, family farms, michigan companies that are creating good jobs who wants to be here in the united states? do we value our future? are we helping young people get an education, middle-class families get ahead? are we going to do it in a responsible way? that's a key question here. are, are we adding -- or, we adding to the burden of that for our children and grandchildren? the tax plan being considered ads trillions of dollars to the national debt -- adds trillions of dollars to the national debt. it's shocking to me that the document would remove the requirement we know -- there would be a cbo score before something is brought forward, certainly does not go in the direction we should be,.in
, -- but, budgets are about people. this budget, and the american tax plan says, the american people are not valued. 47 million americans depend on their health care from medicare. this budget would cut medicare by $470 billion -- 400 $73 billion. children and parents and seniors 473 billion dollars. children and parents and seniors and people in nursing homes depend on medicaid. i'm perplexed to read we just went through this debate. we just -- i'm perplexed. we just went through this debate. the american people said no to the new health care plan. here we are again, only this
time, it's very clear and transparent that this is about using those dollars, cutting medicaid, cutting medicare, and giving that to a tax cut for the wealthiest 1%. i also want to say as the democratic leader on agriculture that i'm veryi also want to cons drop -- i'm very concerned. prices dropped by 50% for our farmers. in our last farm bill, agriculture did its part by bringing forward what has now ben what has shown by cbo to $100 billion in savings. no other committee or department has done that. ofbuilt in cuts and savings
$100 billion. over 500 food and farm groups agree -- of $100 billion. how this budget would target farmers and rangers for an additional $21 billion in cuts, that's the difference in baseline. that doesn't include cuts to nutrition assistance, which puts food on the table for millions of families. when we look at the tax plan in proposed many middle-class see a taxould increase in this proposal. under the republican plan, a senior citizen in michigan making $20,000 a year would see a tax increase. a married couple with two children income of $70,000 a year in gaylord, michigan, would pay more taxes. a single mom with three kids and our creek, michigan, -- in dollar creek, michigan, $50,000 a year, which never stretched far enough, would pay $1000 more in taxes. for what?
to cut taxes for the wealthiest 1%. that's not rhetoric. that is the reality, and the proposal that is in front of us. in fact, 80% of tax cuts would go to the top 1%, who would receive on average $200,000 in a tax cut, which is more than the majority of people in michigan make. a year let me stress again -- a year. let the stress again: we need tax reform caicos to small businesses, that really closes loopholes -- that really those two small instances, that really closes loopholes, that stops jobs from going overseas. we need tax reform that puts money in the pockets of working people, middle-class families in michigan and across the country. if we have a tax proposal that does that, cap me and -- count me in.
if asking people with disabilities, seniors, children, families to lose their health care to fund a huge tax cuts for the wealthiest americans while creating debt, in front of us -- as what's in front of us, that's a bad deal for michigan and you can count me out,. thank you, mr. chairman. chairman: sen.-- boozman: next. i like to thank the chairman for their hard work, and his staff. they have worked hard over these last several months on the fiscal year 2018 budget resolution i like to. tiger daily from arkansans, very concerned with the physical state of our country. for $20 trillion of national debt, our nation simply can't down thatcontinue
fiscal path. i believe this budget changes that direction. not only through the budget, but down that fiscal path. setting up the ability to go forward with meaningful tax reforms. not only does this budget surplus with a 10 years of $197 whilen, but it does so reducing the deficit by $5.1 trillion over 10 years. it also protects and provides needed flex ability for the tomittee's of jurisdiction write -- for important bills, such as the farm bill and infrastructure built. it creates a roadmap by which the senate can move forward in real and impactful tax reform three the bottom line is -- on tax reform. the bottom line is, 70,000 pages long, that's the turn -- that's the current tax plan. it's ridiculously complex. arkansans, all americans,. --t's what you're constantly all americans want it simple.
that's what you hear constantly at home. this budget takes away from meaningful tax reform. it's all about hard-working americans keeping more of their paycheck. with that, i yield back. kaine: thank you. i want to work on tax reform with my colleagues. the notion of tax reform hasn't been done since 1986 that would promote economic growth is a smart thing to do. there's a right way and run way to do it. i think this is starting up the runway. two sets of concerns that are based on content to the degree that we know, and on process. first on content, we don't have the full plan. gary cohen said this is the final offer, though we don't have all the details. they want to know about the contents. i have a couple of concerns. one, that the tax cuts are way
-- are weighted heavily towards people who were well off but don't need them. the minimum tax, adjustment of a top breakdown -- those caused me concern, and the elimination of the estate tax. that would take $270 billio -- n out of the budget over the next seven years. that the equivalent of you could offer pre-k to every low and moderate income kid in the united states an. that's what $270 billion would buy you. second concern, it's a deficit busser -- buster. i don't think we should be doing tax reform that bust the deficit. finally, mr. chairman, i'm looking at a couple of odd quirks. maybe we can work these out. the discussion i've seen of adaptability of state and local taxes suggests this was put in
because it punishes blue states and doesn't punish red states. that's not the way to you ought -- that's not the way you ought to be doing tech policy. second, the elimination of personal exemptions is like this -- the tax version of the china one-child policy. if you have more than one, you get socked. i can't imagine why we would have a tax code that would suck people for having more kids -- sock people for having more kids. i'm concerned about process. - this is example - the kind of thing that makes people crazy if they look at what we do. section 4111. "repeal with certain limitations: sections 3205-32 3206.
doesn't really tell you what it is. sums kind of boring and technical -- sounds kind of boring and technical, but it appears to be this. that particular revision requires we will have a cbo score reduced two days before a bill is voted on. if you take that out, and you are fast tracking the ability to vote on all kinds of things, the cbo score basically is an anti-transparency ameren -- measure. public to knowhe what the cbo scores before we vote on it. that sort of gives way an awful lot about what's going on in this public to know what the cbo provision. this is not designed to produce transparency. provision like this says we're trying to scare was going on. reconciliation, i
think we could do tax reform in a partisan way through the finance committee, even with the 60 throat -- vote threshold in the reconciliation, senate. i think we could do tax reform that would last if it was bipartisan. if we did it in regular order, it could be permanent.and reconciliation a reconciliation, instructions as we are the majority party, -- says, we are the majority party. we will do it with our own votes. i was in the virginia chamber of commerce days ago. they want tax reform, but they like it to be permanent. choosing reconciliation says it's going to be partisan and temporary. i think we can do better. offer some amendments tomorrow, one sequestering, one on going back to a true cbo score. not just a cbo score for legislation, but also for an amendment.i have an amendment about career and technical education. finally, i want to change some provisions a call for work to be deficit neutral. i want change to be revenue neutral. i don't want the deficit on
taxes to be paid for by massive cuts in medicaid and medicare and social security. let's make it revenue neutral. much.air, thinking so chairman: out of the to sit down and talk with you about couple concepts i have -- i would love to sit down and talk with you about a couple concepts i have. we have an opportunity to not just tinker around with her current taxes,, but to do something -- with our current taxes, but to do something. if you want to have a simple system, you can choose which one you want to comply with.the other one would be business income -- treat all business income equally. all kinds of pro-growth aspects to that. senator kaine: i love to. chairman:. thank you but secondly on the one here, so i've got more than six minutes -- i'm the only one here, so i've got more than six
minutes. [laughter] so it a presentation, help the audience enjoys this. why would we present a budget like this?that's why . what we have done, and this was number -- a number of budgets ago, i asked cbo including in their analysis a 30 year deficit horizon. i felt that would be more relevant than unfunded liabilities. people don't understand that present value. they started presenting information over a 30 year time frame. this doesn't do it in dollars it is a percentage. of gdp. they try to present that into dollars. in the next decade, cbo projects a $9.6 trillion deficit. --,tickets out 37 drilling two decades out, $37 trillion. three decades out, $87 trillion.
a total of $129 trillion. they say it's only $107 trillion --ok. somewhere over $100 trillion. just to show you this, the net private -- asset base of america is $120 trillion. that's why we are trying to propose the budget that brings us into balance. there's a number of ways to think of this. i've broken down the deficit two different ways. one, you can look at the different proponents, in terms of how much deficit has proposed -- has improved these programs. over 30 years, social security will pay up $18 trillion more in benefits with the personal payroll tax. medicare will pay $39 trillion more. at about the interest we will pay to our creditors under the cbo analysis,more. $65 trillion. that totals $122 trillion.
clearly unsustainable. just those three items, social security medicare -- if we don't want to pay this to our creditors, we better dress but deficits and social security and medicare. another way of looking at this is, we will spend in terms of revenue. in 30 years, cbo estimates estimates that projects we will raise about $199 trillion worth revenue. during that time, we will spend $55 trillion on medicare, $32 trillion on medicaid and obamacare, totaling $156 trillion. at that on the debt, you are over the amount of revenue we will raise by about $22 trillion. you notice there is no spending on defense. there's no spending on any of the departments. clearly, this is unsustainable.
of the --he question that answers the question of the ranking member: why would we propose a budget that intends to balance in 10 years? i would say the other reason we're trying to pass this budget is to promote economic growth through a pro-growth tech policy. analysis says if we can get out of the economic doldrums -- meager economic growth of 2%, we literally will add $2 trillion to our festival -- to our federal revenue. there have been a number of individuals that have talked about massive cuts, trick pony and cuts, slashing medicaid. let me just show you what they're talking about. under graham-cassidy, current tojections, we would go up $700 billion in medicaid and obamacare funding 10 years out. under graham-cassidy, we would
be spending $607 trillion, 45% increase. there's never any cut in spending, just a reduction in growth and spending.this is what a cut looks like . i know the chairman has proposed a penny-plan in the past. next slide. if you would go from the petty plan, you would go to paying $400 billion. that's a cut over 10 years, my .5%. next slide treaty want to talk about to come in cuts, that be a 5% per year decrease, or 10%. i would consider those real cuts. may be we even talk about slashing troponin cuts. let's take a look at what that spending accumulates over the decade. next slide. under current law, we will spend $5.68 billion on medicare, medicaid, and obamacare. under graham cassidy --
graham-cassidy, we spent 5400 42 billion, -- $54 could be real savings in the penny plan. then our final slide. this relates to the massive -- massive deficit. all gram-cassidy would do is reduce that by $226 billion, about two point -- all graham-cassidy would do is reduce that by $226 billion. many say one point $5 trillion, 15.4%. this talk of massive drug money and cuts is simply false -- $1.5 trillio. n. , that's what we're trying to propose a budget. -- to answer
the ranking member question, that's why we are trying to propose a budget. i will turn it back over to senator whitehouse. senator whitehouse: thank you. chairman, we have agreed that broken broken and is in urgent need of reform. our committee lacks jurisdiction over the biggest parts of the budget, including tax spending. appropriate flow through a budget numbers with folks anyway. that's probably one of the reasons that nobody is ever here, the budget many -- committee including right now -- i'm looking at vacant seats in the audience, everybody else spoken virtually has left. we only significant thing still do is call reconciliation. it has completely lost its original purpose. just the fact that we are here doing this is peculiar.
under the timetable set by section 300 of the budget act, there's the cut of the budging fiscal year. in january, with president trump about to take office, republicans instantly ran through a budget with no purpose. its sole purpose was to allow a majority vote to repeal the affordable care act. when that failed, republicans needed to instantly peasant to tax cuts -- instantly pivote to tax cuts for the rich. at it again tore use that reconciliation shortcut with the sole purpose of --delivering in or must tax cuts to americans. this budget resolution passes along a multi-trillion dollar cost to our children and grandchildren. it's frustrating that concerns about the deficit appear to have lasted exactly as long as the obama administration. the chairman said in 2015 we
need to eliminate deficits instead of exploding them, and we are facing the biggest debt country has ever owed. the debt endangers our government, threatens our children and grandchildren. yet, sure we are today to create a reconciliation pathway to grow our deficits by $1.5 trillion in the first decade alone. we are back to the cheney rule. deficits don't matter. no, tax cuts do not pay for themselves. the deficit explosion following the bush cuts in 2001 and 2003 squandered what was left of the clinton surpluses. the kansas experiment failed spectacularly. i'd ask unanimous consent to add an article at the end of my remarks called, i hope -- called " i helped create the gop tax written by is wrong"
bruce bartlett, executive advisor to ronald reagan, who talks about this as "gop tax mythology. for public and try to do -- republicans, what they tried to do should be rejected.'" senator robert c byrd was one of -- a late senator was a drafter of this act, he testified before this committee in 2009. the reconciliation process was designed to facilitate .egislation to reduce deficits chairman conrad took that you rule and he adopted the reconciliation measures must reduce the deficit. this was revealed as soon as they were empowered. now, here we are, passing a budget that is not a budget, with the sole purpose reconcilis must reduce the deficit. to line up for debt tounway finance tax cuts for the wealthy
. mr. chairman, we can do better. instead of using the budget committee to circumvent the regular orchard of the senate -- the regular order of our senate, we should use it as a four room for real bipartisan debate on our nations fiscal health, including how to address our $20 trillion national debt. toch it are jet to be -- jet gdp ratio be 00 debt to gdp -- debt to gdp ratio be? a vote for the budget before us would move us in the wrong direction. this budget and process is a sham. it has the sole purpose of allowing a budget majority to suspend regular order to pass the trump tax giveaways. if it passes, it will be the best argument yet for dissolving
this panel. concur with senator corker, who said in his statement that partisan runway for deficit finance tax cuts is, to use his phrase "that it is -- that is about."thank0% you, chairman . mr. chairman: thank you. senator kennedy. senator kennedy: thank you, mr. chairman. you, mr. thank chairman, for this budget. balanced,umm, it's it's very thoughtful, and i think it will i don't mean to be ugly and what
i am about to say, mr. chairman. everything happens for a reason. sometimes the reason is you are stupid and make a bad decision. that is what has happened in washington the last eight years. for whate responsible 1.8% growth in a our economy over the next 10 , want to hide there had in a bag. that is embarrassing for the american economy. we all know the average, average is well over 3%. the folks who have the power tried everything but the right thing. first they tinkered with interest rates.
that didn't work to get the economy moving. then president obama tried his spent -- his stimulus spending. that did not work, it ran up the deficit. then they did quantitative easing out the wazoo. that didn't work. what we should have started with is allow people to keep more of their money. , and i think the free enterprise system demonstrates this, people can spend the money they earn better than the government can. i wish senator sanders was here. tomorrow,ur debate the senator can explain more about his perspective on the tax reform plan. he must be clairvoyant.
i don't say that with disrespect. there is no plan. the bill is not drafted. i looked at the reports that say it is going to do this and that, the people writing that report, if they are accurate, they need to go to the racetrack and that on the horses. they must be clairvoyant. the bill is yet to be drafted. i hope we help everybody. i hope we start with ordinary americans. i think the genesis of the lot , not all of it, but the genesis of a lot of it is the fact that there are too many americans not participating in the wealth of this country. , not culturally, not economically, not spiritually. they are angry about it. they believe in the american dream.
people tell me every day, ordinary people, they say, i look around and here is what i too many undeserving people at the top. they are getting bailouts. manysay, i see too undeserving people at the bottom getting handouts. they say, i am getting the bill. i can't pay it anymore. thanks to obamacare, my health insurance has gone up. has gone up.on my taxes have gone up. what has not gone up, they say, my paycheck. median household income is the same as it was in 1999. i hear it every day. these are real americans. they are the bedrock of this economy and our society.
they get up every day, they go to work, they obey the law, they pay their taxes, they tried to do the right things by their theiren, i try to teach kids morals, they try to save money for retirement. , they haveashington no voice and as a result have no chance. we have to give them a voice. we have give them a chance. we can do that through tax reform. starting with helping ordinary americans. help everybody. i want to help businesspeople, small and large. i want to help the wealthy. i want to help the poor. i want to start with helping the middle class. i believe that is what our tax reform package will do. i want to thank you for giving us an opportunity to do that, mr. chairman. >> thank you. the list would be senator king,
but he is not here. .hen senator harris there is nobody on this side to speak. we will go to center -- senator gardner. >> thank you, mr. chairman. and cutouts,douts, is the economic policy for the past eight years. thanks to the work this committee is getting started on, and support athat budget that grows the economy that creates jobs and opportunity. before i get into what the budget does, it is about a serious debate. many amendments and debate we will hear is going to be about political theater. people, i hope they are not distracted by statements and gestures that are trying to reinforce the hike tax status quo or protect entrenched interests. i hope they remember the budget is focused on bringing relief to
the american people. amusement at the wrecking member of this committee, said tax cuts were out of touch. people who supported efforts to lower the rates on families and businesses are out of touch. only in washington can letting people keep their own dollars be considered out of touch. let there be no confusion. what side is on the side of the american people? the side that says we want hard-working families to keep their own money and the own pockets. budget istantly, this the first step in a process of providing relief for families living with america's broken tax system. over the years, operate of lobbyists has rigged the tax code. those with accountants and lawyers to work the system can end up paying no taxes at all.
the rest are hit with one of the highest corporate tax rates in the world. i wish those senses were my own. a are not. that statement came from barack obama's state of the union address in 2011 when he went on to say we should lower tax rates for the first time in 25 years. a radical concept that barack obama delivered to the people in 2011 to lower the highest tax rates in the world. it has been 30 years since congress passed our last major tax reform. i was 12 years old. i can assure you 12-year-olds were moke -- were more interested in getting an atari. in an age of wi-fi's and smart cars we still haven't -- have an atari tax code. it is built for a different era. it is holding americans back.
people feel like they have been left behind. coloradans have not seen their wages go up. they have not seen their hard work lead to more money in their pockets. code, thatbig tax others can game. they need relief. people in colorado are tired of leaving their job because taxes are too high. ranchers and colorado are forced to pay taxes twice because this government believes death is a taxable event. businesses want to bring money overseas back to united states to create jobs, but they can't tax code.r inflexible this budget is the first step to deliver that relief. to simple find the tax code so it does not take americans billions of hours, the gdp of new zealand just to bill and file their taxes.
it is the first step to lower taxes so people can keep their hard earned money. if the first step so businesses on main street can raise wages and investing quick. it's the first step to induce businesses to bring back the trillions of dollars they stored overseas to avoid our uncompetitive corporate taxes. it is long overdue. i look forward to working with this committee. i hope a bipartisan product can bring this resolution to the floor. thank you, mr. chairman. >> thank you. does anyone seek recognition?
we will recess to the call of the chair. the chair might be a different person than me at that moment, because there will be a second vote. i'm going to go vote. toomey comes back, he can restart the hearing. we have four people on the list. they will speak based on who has come so far. recess to the sound of the gavel.
>> the chair will bring the meeting back to order. we recognize the senator from georgia for his comments. we will begin. >> thank you to the committee for the opportunity to make these statements as we go into this important process here in the budget committee. first, i have to make these comments, calling this a budget is really a sham. it is not a real budget. that is because it is not really a law, it is a resolution. everything can be ignored.